Exam 15: Global Accounting and Taxation

Which financial statement answers the question: How much income did the firm earn or lose during the period?

The _______ statement summarizes the revenues earned and the expenses incurred by a business over a period of time.

Transfer pricing is used by most multinational corporations.

Internal auditors review all aspects of operations in search of improvement, as well as review the internal control structure to determine if they are operating as expected.

Types of taxes include all of the following EXCEPT:

Describe the two parts of the accounting information system.

Differences between U.S. and International GAAP are influenced by all of the following EXCEPT:

_______ is an evaluation of a company's financial statements in order to identify significant trends or relationships among the items.

According to the ________ inventory costing method, the cost of the first inventory unit purchased is assumed to be the first cost transferred out to cost of goods sold.

Financial ratios are helpful in equalizing companies of different sizes for comparison of financial performance.

Of the following statements about tax rates in selected countries, which is NOT true?

Scenario - The Williams Company Based in South Dakota, USA, the Williams Company has been in operation since 1967.  It has five branches located in China, Europe, South America, Mexico, and Canada.  Its exquisite product line of fine custom-made jewelry is highly desired throughout the world.  This company has maintained a very healthy balance sheet. The Williams Company is known within the industry for integrity and fair business practices.  This company maintains an accounting system that is open for any stakeholder to view.  It prides itself on being honest and trustworthy.  The company feels it is this honesty in business practice that has led it to be a billion dollar organization. Which one of the following would the Williams Company expect to establish a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements?    

______ is the recording, summarizing, and reporting of the economic activities and events of an organization.

The statement that shows the beginning balance for retained earnings, additions and reductions to retained earnings, and the ending balance of retained earnings is called the income statement.

Describe and differentiate between the U.S. GAAP and the International GAAP.

There are two major categories of auditing: _____ auditing and _____ auditing.

Liabilities + Owners' Equity = _______.

A typical AIS has two principal objectives: (1)to provide all the financial information internally needed by management for business decision-making, known as management accounting; and (2)to provide financial information to various external users concerned with the financial activities of the organization, known as financial accounting.

Which of the following external users would require financial statement information, specifically information concerning ability to meet financial obligations?

Briefly explain how financial statement analysis can be used to evaluate a company's financial situation.